Oil prices...

[AxlsMainMan]

And down we go..

Stocks end mostly lower even as oil prices retreat

By MADLEN READ ? 30 minutes ago

NEW YORK (AP) ? Wall Street ended a whipsaw day mostly lower, as fears of escalating instability in the financial sector kept investors on edge despite a steep retreat in oil. The Dow Jones industrials on Tuesday had their first close below 11,000 since July 2006.

Just days after the government said it would aid Fannie Mae and Freddie Mac if necessary, Federal Reserve Chairman Ben Bernanke told Congress the U.S. economy faces "numerous difficulties." During the day's testimony, Treasury Secretary Henry Paulson also said the Bush administration has no immediate plans to lend money to the mortgage giants or buy their stock.

Shares of Fannie and Freddie ? which together hold or back nearly half of all the nation's mortgages ? tumbled again.

The stock market did benefit from some bargain-hunting as oil retreated from its near-record levels, but the uncertainty of the financial sector made that recovery hard to sustain. If oil prices stabilize or retreat, consumers might feel more comfortable spending on discretionary items, and in turn help the economy.

"There's definitely a correlation between high energy prices and low consumer spending, and we need that to abate to get us a break," said Kim Caughey, equity research analyst at Fort Pitt Capital Group.

A barrel of light, sweet crude dropped $6.44 to settle at $138.74 on the New York Mercantile Exchange as traders bet that the weak economy in the United States and elsewhere will take its toll on global demand.

While some of the market's most battered bank stocks ? including Washington Mutual Inc., Lehman Brothers Holdings Inc., and regional bank First Horizon National Corp. ? finished higher Tuesday, most bank stocks gave up their brief rallies by the end of the session.

The Dow fell 92.65, or 0.84 percent, to 10,962.54. It was the blue chips' lowest close since July 24, 2006; the high price of oil is one of the major reasons the Dow has been trading at nearly two-year lows.

Broader stock indicators ended mixed. The Standard & Poor's 500 index fell 13.39, or 1.09 percent, to 1,214.91, while the Nasdaq composite index rose 2.84, or 0.13 percent, to 2,215.71.

The technology-dominated Nasdaq got a lift from Microsoft Corp., which rose $1, or 4 percent, to $26.15 after an Oppenheimer & Co. analyst said the software company's shares "look attractive" ahead of its quarterly results scheduled for Thursday.

Intel Corp. also rose ahead of its earnings, which were released after the market closed Tuesday and showed a 25 percent profit increase that beat analysts' expectations. After advancing 24 cents to $20.71 in regular trading, Intel shares rose another 29 cents to $21.00 in after-hours trading.

Treasury prices traded higher, but pared earlier gains. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.83 percent from 3.86 percent late Monday.

The Labor Department said Tuesday that core inflation at the wholesale level, which excludes energy and food, ticked up by just 0.2 percent, but that overall wholesale prices jumped by a larger-than-expected 1.8 percent ? the biggest gain since November. For the past 12 months, wholesale prices including food and energy showed an increase of 9.2 percent, the largest increase since June 1981.

U.S. consumers have been monitoring their budgets more carefully in the face of higher energy prices, falling home values and an uncertain jobs climate. The Commerce Department reported Tuesday that retail sales edged up by 0.1 percent ? a weaker amount than the 0.4 percent increase analysts expected in June. Total sales were dampened especially by plummeting sales at car dealerships.

"The bottom line is, eventually, oil as a commodity is going to react to the overall economy," said Dan Alpert, managing director at the investment bank Westwood Capital.

Among the stronger stocks of the day were Lehman, which rose 82 cents, or 6.6 percent, to $13.22; WaMu, which rose 38 cents, or 11.8 percent, to $3.61; and First Horizon, which rose 85 cents, or 16.9 percent, to $5.89. First Horizon named a new CEO on Tuesday.

But Fannie Mae fell $2.66, or 27 percent, to $7.07, and Freddie Mac fell $1.85, or 26 percent, to $5.26. Treasury Secretary Henry Paulson said that if the government extends financial backing to the two institutions, it will be done "under terms and conditions that protect the U.S. taxpayer."

In a bid to protect Fannie Mae and Freddie Mac, Securities and Exchange Commission Chairman Christopher Cox said to Congress Tuesday that the SEC will broaden existing rules prohibiting naked short selling of banks and broker dealers.

Short-selling is a type of speculation, where a trader sells securities he doesn't own; essentially, it's a bet that a stock will fall. Naked short-selling is when a trader makes such a bet without arranging to borrow the stock first.

Another big decliner was American International Group Inc., which suffered the worst percentage drop in the Dow on Tuesday. AIG shares fell $1.20, or 5.32 percent, to $32 after a Wachovia analyst lowered his rating and earnings estimate for the beleaguered insurer.

General Motors Corp. saw the largest rebound among the 30 Dow stocks after announcing plans to lay off salaried workers, reduce truck production, suspend its dividend and borrow $2 billion to $3 billion as it adjusts to a weakening U.S. market. GM shares rose 46 cents, or 4.9 percent, to $9.84.

The Russell 2000 index of smaller companies fell 2.15, or 0.32 percent, to 662.35.

Declining issues outnumbered advancers by nearly 3 to 1 on the New York Stock Exchange, where volume came to 1.86 billion shares.

Overseas, Japan's Nikkei stock average fell 1.96 percent, Britain's FTSE 100 fell 2.42 percent, Germany's DAX index fell 1.91 percent, and France's CAC-40 fell 1.96 percent.

http://ap.google.com/article/ALeqM5gHs5OM3gFG_DytQQZFbWfgPT08MAD91UH8500

[Dr. Blutarsky]

I won't expect prices to go down at the pump.

We really need an aggressive course of action on all fronts to deal with gas prices.

Congress is arguing with each other and not accomplishing anything to help out the situation, meanwhile we all suffer for it.

[SLCPUNK]

We had a veto free Republican president and Republican Congress for six years and they didn't do jack shit. They were well aware of what was on the horizon. If they had interest in addressing the energy issues they would have off shore drilling and ANWAR in the works right now. The two oilmen were more concerned about oil profits and no compete contracts for VP Haliburton to come up with a plan for America's energy demands. But then again, that would have required an actual plan, and we all know how great Bushie is with planning anything.

[Smoking Guns]

That is why I am ready for Obama and a Democratic House to finally get all these things fixed!!!    

No excuses then..

[AxlsMainMan]

That is why I am ready for Obama and a Democratic House to finally get all these things fixed!!!    

No excuses then..

Don't get your hopes up.

I heard on CNN last week that it's going to take atleast 25 years to clean up Bush's mess, and restore America's reputation.

[Smoking Guns]

That is why I am ready for Obama and a Democratic House to finally get all these things fixed!!!    

No excuses then..

Don't get your hopes up.

I heard on CNN last week that it's going to take atleast 25 years to clean up Bush's mess, and restore America's reputation.

Correct, it doesn't matter who president is...  This is bigger than them.

[Bodhi]

 
       

Reuters
Oil falls 5.4 percent in biggest drop since 2004
Friday August 22, 3:35 pm ET
By Richard Valdmanis


NEW YORK (Reuters) - Crude oil prices fell more than 5.4 percent on Friday in the biggest one-day slide since 2004 as dealers turned their focus to rising supply levels and weakening global demand.
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A rebound in the U.S. dollar encouraged the sell-off, applying downward pressure across the commodities markets by weakening the purchasing power of buyers using other currencies, dealers said.

The slide adds to a more than 20 percent fall in the price of crude since mid-July and could increase the chance oil cartel OPEC will cut official production limits when the group meets in Vienna on September 9.

U.S. crude fell $6.59, or 5.4 percent, to settle at $114.59 a barrel -- the biggest fall in percentage terms since December 27, 2004. London Brent crude fell $6.24 to $113.92 a barrel.

"People who were buying yesterday are taking profits today," said Peter Beutel, analyst at consultancy Cameron Hanover. "There is also renewed technical selling and talk again of demand destruction. The dollar is strong again too."

The declines Friday were encouraged by two reports -- one showing an uptick in OPEC crude oil output and another showing an expected decline in U.S. travel over the September 1 Labor Day holiday weekend as high fuel prices hit consumers.

Industry consultant Petrologistics said on Friday OPEC oil output was expected to rise in August by 450,000 barrels per day, to 32.95 million bpd, a factor that could further beef up inventory levels in consumer nations.

Meanwhile, the U.S. auto and travel group AAA said that Labor Day holiday travel was expected to fall this year by the largest amount in at least eight years as consumers struggle with higher gasoline prices and airfares.

Concerns high energy costs are taking a toll on global fuel demand have played a big role in oil's sharp descent from peaks above $147 a barrel in mid-July. But oil prices remain up about 15 percent so far this year.

Friday's losses came after a big climb in prices earlier in the week that had been supported by rising tension between the United States and Russia, the world's second biggest oil producer.

Russia said this week it would respond with more than just a diplomatic protest to a U.S. deal with Poland to station parts of a U.S. missile defense shield on Polish soil.

Relations between Russia and the West had already been strained by Moscow's military intervention in Georgia, a conflict that has already disrupted rail shipments of Azeri oil through the region.

Meanwhile, operations on the Baku-Tblisi-Ceyhan oil pipeline were ramping up with a cargo of Azeri crude scheduled to be loaded in Turkey early next week -- the first cargo since an explosion on the line in Turkey August 5.

 

[D]

At  the local gas station just now, it was unbelievably out of this world packed. The gas station person said its because gas is going to be 5.00 dollars a gallon tomorrow!

HOLY SHIT!

[Chief]

even if it goes down a bit, i expect it to hit 5 next year or so... we need drastic measures.

[D]

They had a 10 gallon limit due to a gas shortage in the Southeast region.

This could be HUGE for the election if someone will jump on this.

[AxlsMainMan]

Gas prices around here have been stagnant despite the continuous decrease in the price of oil per barrel.

Still around $1.17- $1.22/ L

[Smoking Guns]

They had a 10 gallon limit due to a gas shortage in the Southeast region.

This could be HUGE for the election if someone will jump on this.

D, this is a fucking scam.  Someone started the rumor over what is now a Category 2 Storm.  No refineries are damanged.  No oil tankers capsized.  This is such a joke and us idiots getting gas like morons is even more pathetic unless you NEEDED gas. 

[Dr. Blutarsky]

They had a 10 gallon limit due to a gas shortage in the Southeast region.

This could be HUGE for the election if someone will jump on this.

D, this is a fucking scam.  Someone started the rumor over what is now a Category 2 Storm.  No refineries are damanged.  No oil tankers capsized.  This is such a joke and us idiots getting gas like morons is even more pathetic unless you NEEDED gas. 

It is not a pretty sight when a refinery gets mange. 

Seriously, you are absolutely right. I live in FL and there are some people who lose it when a threat of a storm comes, they hoard fuel. Get enough of these people and stations get pumped dry before they get new supply and the guy who really needs gas is screwed.

I am not saying people should not make preparations for a storm, but there are some nutjobs out there. 

[Smoking Guns]

They had a 10 gallon limit due to a gas shortage in the Southeast region.

This could be HUGE for the election if someone will jump on this.

D, this is a fucking scam.  Someone started the rumor over what is now a Category 2 Storm.  No refineries are damanged.  No oil tankers capsized.  This is such a joke and us idiots getting gas like morons is even more pathetic unless you NEEDED gas. 

It is not a pretty sight when a refinery gets mange. 

Seriously, you are absolutely right. I live in FL and there are some people who lose it when a threat of a storm comes, they hoard fuel. Get enough of these people and stations get pumped dry before they get new supply and the guy who really needs gas is screwed.

I am not saying people should not make preparations for a storm, but there are some nutjobs out there. 

I saw this tool bag that had 5 one gallon cans of gas in the back of his brand new toyota camry that gets 30 mpgs... What the fuck is his fucking fear hear in Alabama?  The storm is 900 fucking miles away.  Its guys like him why we will run out of gas here faster.  And the media announced this shit.  The drove this scare panic stuff.  Pisses me off.  I know the pipe line is closed, but doesn't mean its going to be closed forever.  Where are these people going to go?  I have a full tank and can go 512 miles.  I can almost go to the beach and back on 512 miles.  Such over kill.  so lame.

[Dr. Blutarsky]

Prices shot up here today- the cheap guy was at $3.59 and there was a line out to the street - the greedy gouger was up to $3.90 five miles away.....no reason for that shit, Oil Slides Below $100 a Barrel today.

It's all about fears from Ike, which hasn't even hit yet..... 

[D]

So with it under 100 a barrell, shit should be going down to 3 a gallon right?

It went up a quarter today where i live.

I was on a quarter of a tank last night, so yeah, I bought into the hype and filled up

[Dr. Blutarsky]

So with it under 100 a barrell, shit should be going down to 3 a gallon right?

It went up a quarter today where i live.

I was on a quarter of a tank last night, so yeah, I bought into the hype and filled up

I did too, needed gas on 1/8 of a tank.....

There's a guy in Orlando selling gas at $5.00/gallon - greedy price gouger.

[AxlsMainMan]

$1.38.9/L here in Toronto

[Dr. Blutarsky]

Prices should go back down, right........?

Oil Falls Below $99 on Minimal Ike Damage

Monday, September 15, 2008


SINGAPORE ?  Oil prices fell to $96 a barrel on Monday after Hurricane Ike inflicted minimal damage to oil installations on the Texas coast.

Light, sweet crude for October delivery declined $2.28 to $98.90 a barrel in electronic trading on the New York Mercantile Exchange midafternoon in Singapore. The contract rose 31 cents on Friday to settle at $101.18 after dropping as low as $99.99 per barrel. Before that, the last time Nymex crude traded below the $100 mark was April 2.

"Now that Ike has come and gone, initial reports indicate no real damage to the oil infrastructure in the Gulf coast area," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore.

Federal officials said Sunday that the storm destroyed at least 10 oil and gas platforms and damaged pipelines in the Gulf of Mexico ? only a small amount of the 3,800 production platforms in the Gulf. Three years ago, back-to-back hurricanes knocked out more than 100 platforms.

For all the day's business news, visit FOXBusiness.com

Power outages were slowing efforts to restart the refineries. Valero Energy Corp. said only one of its closed refineries had power, and spokesman Bill Day said he couldn't estimated how long it would take to resume production.

Investors are now turning their attention toward falling oil demand in the U.S., Europe and Japan as slowing economic growth threatens to undermine consumer spending.

"Market sentiment is decidedly bearish, with all these concerns about developed countries going into recession or a serious slowdown impacting oil demand," Shum said.

Oil fell despite reports that militants have launched another attack Nigeria's oil infrastructure in a third day of violence.

Lt. Col. Sagir Musa of the Nigerian military task force in the southern oil delta region say militants in speedboats attacked troops at a Royal Dutch Shell PLC oil-pumping station early Monday. The fighters arrived in about 10 speed boats and detonated dynamite and other explosives during the battle.

Musa said it was possible that the so-called flow station was damaged during the attack. Shell officials couldn't immediately be reached for comment.

Prices were kept from falling further by a weakening dollar. The euro jumped to $1.4318 on Monday from $1.4229 late Friday, while the dollar dropped to 105.78 yen from 107.92 on Friday.

Usually when the dollar falls, investors buy oil as a hedge against inflation.

In other Nymex trading, heating oil futures fell 2.91 cents to $2.91 a gallon, while gasoline prices dropped 10.56 cents to $2.66 a gallon. Natural gas for October delivery rose 2.7 cents to $7.339 per 1,000 cubic feet.

In London, October Brent crude fell $1.85 to $95.73 a barrel on the ICE Futures exchange.

http://www.foxnews.com/story/0,2933,422461,00.html

[AxlsMainMan]

Prices should go back down, right........?

Maybe if Hurricane Josephine behaves